G.R. No. 205389 - SOCRATES C. FERNANDEZ, IN HIS CAPACITY AS MAYOR OF THE CITY OF TALISAY, VS. COMMISSION ON AUDIT.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, the then RCD, RLAO, COA Regional Office No. VII issued the following Notices of Disallowance (ND), all dated April 23, 2007: 1) ND No. 2004-001-100-(2004) L2-07-159-00-006 for P8,500,000.00; [9] 2) ND No. 2004-002-100-(2004) L2-07-159-00-007 for P613,440.00; [10] 3) ND No. 2004-003-100-(2004) L2-07-159-00-008 for P10,086,560.00; [11] and 4) ND No. 2005-004-100-(2004) L2-07-159-00-009 for P7,788,000.00. [12] The purchase of liquid fertilizers The ATL also questioned the price of 3,333 bottles of liquid fertilizer purchased by the City of Talisay at P900.00 per liter or a total of P2,999,700.00. [13] The highest price obtained by the ATL through canvass and actual purchase from Pacifica Agrivet was P171.00 per liter plus 10% thereof, or P188.10. Thus, the unit overprice was P711.90. [14] As a consequence, the ATL issued AOM No. 06-001 dated November 8, 2006. [15] Subsequently, the ATL issued ND No. 2007-002 dated July 23, 2007, disallowing the amount of P2,372,762.70 (or the unit overprice of P711.90 multiplied by 3,333 units). [16] The COAs Ruling On account of the audit findings, a special audit team was constituted to conduct an investigation of the above contracts under the COA Legal and Adjudication Sector (LAS) Office Order No. 2007-S-009 dated September 10, 2007. [17] Pending review of the Special Investigation Report, the persons held liable under the five NDs, through counsel, filed an appeal dated December 21, 2007. [18] Aside from petitioner, the persons named liable under the NDs were the other signatories, the Bids and Awards Committee (BAC) members, and the payee. Their appeal was addressed to the Regional Legal and Adjudication Director of COA Regional Office No. VII. On June 3, 2009, the Regional Director of COA Regional Office No. VII transmitted the appeal to the Team Leader of the special investigation team for appropriate action. [19] On April 23, 2012, the COA rendered the assailed Decision No. 2012-042 [20] dated April 23, 2012, denying the appeal and affirming the subject disallowances. The dispositive portion of the decision reads: WHEREFORE, premises considered, the instant appeal is DENIED for lack of merit. ND Nos. 2004-001-100-(2004) L2-07-159-00-006 for P8,500,000.00; 2004-002-100-(2004) L2-07-159-00-007 for P613,440.00; 2004-003-100-(2004) L2-07-159-00-008 for P10,086,560.00; and 2005-004-100-(2004) L2-07-159-00-009 for P7,788,000.00, all dated April 23, 2007; and ND No. 2007-002 dated July 23, 2007, disallowing the amount of P2,372,762.70, are hereby AFFIRMED. [21] Aggrieved, the persons liable under the five NDs, through counsel, filed a Motion for Reconsideration. [22] Having found no merit in the Motion for Reconsideration, the COA denied it with finality in the assailed Resolution (Decision No. 2012-267) [23] dated December 28, 2012. Accordingly, the COA affirmed Decision No. 2012-042 dated April 23, 2012. Hence, petitioner filed the instant petition for certiorari in representation of all the person